Heat Crack Tops WTI as BOGO Collapses
The US heat crack finished near $89.44 per barrel, one of the largest readings in the chart’s 12-year history. The crack alone now equals 112.1% of WTI at $79.82 per barrel, placing the total heating-oil barrel value near $169.26, or 212.1% of crude. August heating oil rose 20.92 cents per gallon, or 5.47%, to $4.0285 per gallon, while WTI gained 2.15%. ICE August gasoil surged $84 per tonne to $1,166.25, with August/September widening to +$61 and August/December to +$218.75. This is no longer a simple crude rally. The market is pricing an acute shortage of usable distillate as direct US-Iranian attacks resume, commercial traffic through Hormuz falls to almost nothing and Russian refining disruptions add another layer of pressure.
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